Major Challenges and Perspectives for OFDI of Russian Companies in France

The global business, economic and political environments of today are characterized by high-level volatility, risk exposure, market instability and artificial barriers. The global economic integration that has been supported and developed by the leading world’s economies for the past decades has come to a moment of its greatest transformation. While some companies are trying to deconsolidate and focus on development and preservation of their own strategic assets, technologies and know-how, others are joining forces for support and elaboration on global innovative projects. Russian multinational enterprises have been developing at an incredibly fast pace comparing to global companies originated from developed markets. The drastic switch of the Russian policy towards market economy triggered businesses to consolidate and develop international commercial relations with foreign players. Western Europe markets, historically considered as extremely important for international activities of Russian businesses, played a significant role in the raise of Russian MNCs. Being considered as a center of European innovation and entrepreneurship. French market attracts businesses from all over the world to enter the market and participate local business circles. However, despite the importance of the French market for Russian multinational companies, yet there exist no significant research dedicated to the explanation of the determinants of Russian MNCs expansion to France, peculiarities of their foreign direct investment and business activities. Taking into account the current global realities that are determined by the existing political tensions, economic sanctions, fluctuations of exchange rates and commodity prices, the academic and business applicability of the current master thesis centers around provision of a comprehensive understanding of the main challenges and perspectives companies may face when expanding globally and proceeding foreign direct investment. Therefore, the main objective of this Master Thesis is to explore the determinants and define the perspectives for the OFDI development of Russian MNCs in France. The current Master Thesis is composed by three parts that imply exploration of the major theoretical aspects of multinational corporations and their outgoing foreign direct investment, empirical research dedicated to the analysis of OFDI of Russian MNCs in the French market based on case study of three biggest Russian global companies and definition of the major challenges and perspectives for OFDI of Russian companies in France.